Apple today released an updated iMac G5 in a thinner chassis with 17″ and 20″ displays at speeds of 1.9 and 2.1Ghz. New features include an integrated iSight video camera, Photo Booth software, and IR receiver for the new remote control and Front Row media center software. Graphics have been upgraded to an ATI Radeon X600 Pro or XT on a PCI-E bus, and a Mighty Mouse, Airport Extreme, and Bluetooth 2.0 are now standard.

The iPod was also updated, finally bringing out the long-awaited “Video iPod”. 30 and 60G sizes have up to 20 hours of battery life for music playback or 5 hours of video playback on a 2.5″ color screen. The new iPods are less than half an inch thick and available in white or black finishes.

iTunes 6 now offers music videos and a limited selection of television shows for download (viewable in iTunes or on a video-enabled iPod) at $1.99 each.